Sales Agency

Representing manufacturers who are looking for a cost effective method of introducing new products into the North American marketplace

A manufacturer representative (rep), also known as independent sales representatives or sales agent (HyPoint3), is an individual, sales agency or company that sells a manufacturer's products to distribution, wholesale and retail customers.

When a manufacturer hires a manufacturer's rep firm, this usually means that a contract is signed between the two companies, which empower the rep to sell, or solicit sales for, the manufacturer's products as an agent in a defined territory. The products are usually ordered directly from the manufacturer, who then pays a retainer, and, or sales commission to the manufacturer's rep firm. The retainer fee/rate varies according to the market and the product type.

A Manufacturer's Rep is used - When it is more cost-effective than using the company’s personnel. - When there is lack of a sales force for the manufacturer. The manufacturer's rep will do all of the selling. - When introducing a new product into the market. - When there is a new market the company wants to enter, but the market is not fully developed for their own sales force to be used.

Manufacturer representatives generally represent more than one manufacturer. One of the reasons they can represent more than one manufacturer is the products are related or complementary, but not competing. These reps will know their market and products well since they typically work in a specific industry and geographic area. Manufacturer's reps know the market well because they attend conferences, conventions and trade shows in order to maintain knowledge of new products and developments in their industry.

As a rule, manufacturers both in Canada and the United States use outside sales forces instead of having in-house sales personnel, because in this productivity-conscious era, using a rep workforce is a more efficient and cost-effective way to sell products.

One change from the past is that reps today are doing more than selling, hence the importance of having experience.

Some reps train company personnel in the use of the products they sell, offsetting a cost their customers would otherwise carry. Some reps who sell to distributors, wholesalers and dealers make joint sales calls with their in-house sales personnel, training them to sell the manufacturer's products by the rep.

Contact us to find out how HyPoint3 can help your company in the North American marketplace.

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